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New York Forex Report: EUR Testing 1.1050 Offers

New York Forex Report: EUR Testing 1.1050 Offers

New York Forex Report: The USD is trading broadly lower, with the EUR gaining notably, as the FX market reacts to reports that President Trump may have disclosed classified information to Russian diplomats during a meeting at the White House last week. The news heaps additional pressure on the US administration that has struggled to get ahead of an adverse news cycle in recent weeks and clearly represents another potential delay or impediment to the Trump team’s pursuit of its pro-growth/business agenda. The USD has lost ground against most of its G10 peers so far on the day, with the exception of the CAD, AUD and NZD which are all posting marginal losses, even as commodity prices hold up

USD US empire manufacturing index, a gauge of factories expansion in the New York district, unexpectedly dropped to -1.0 in May (April: 5.2). The index registered its first contraction since October 2016 amid a sharp pullback in new orders. US NAHB housing market index for May showed continued improvement as the index climbed higher to 70 (from 68 in April versus forecast of an unchanged 68).

EUR The newly inaugurated French President Emmanuel Macron on Monday named Edouard Philippe, the centre right mayor of the port city of Le Havre, as France’s new prime minister. After the PM announcement, Macron and German Chancellor Angela Merkel vowed to give a new impetus to Europe, even if it requires treaty change. Eurozone 2017 Q1 GDP data kicks off the week today and is expected to continue to show 1.7% growth YoY and 0.5% compared to 2016 Q4. Eurozone data has generally trended higher recently, suggesting more of the same this week, so there is a bias in the market expecting higher not lower results.

GBP Retails Sales releases on May 18 will probably be the most significant release for May as it captures the UK economy’s current standpoint. Consumer spending has slowed in the first quarter as the weak pound has pushed up the imports price leading shoppers to limit the size of their baskets. This slowdown is a major concern as if it continues it will depress economic growth significantly given that it accounts for the largest proportion of GDP. Slower growth will lessen even further the likelihood of the Bank of England (BOE) bringing forward the time when they will raise interest rates.

Patrick has been trading for the past ten years. After liquidating several accounts in his early days he stopped 'gambling' and applied himself as a student of risk. Self taught and more self aware thanks to Mr Market. Patrick applies simple technical strategies based around market price and time structure to identify high probability trade locations.